| The best Stock Market advice you will ever read is | | | | most expensive mistake, I made was to search for |
| to learn from mistakes when someone else has | | | | the Holy Grail of trading. This was an incredible |
| made them. So, this stock market advice list I made | | | | waste of both time and money. During the first three |
| a list of some of the most common trading mistakes | | | | years of my trading career, I spent over $25,677 on |
| that are made. | | | | a library full of books, videos and seminars as well as |
| Even I`ve made some of these. If you have already | | | | spending thousands of hours in search of the perfect |
| made some of the mistakes, you can rest assured | | | | trading methods. Honestly, 95% of what I bought |
| that you aren`t alone in making them. If you haven`t | | | | was pure junk
I should have listened to my |
| made them, then here`s a way to get around having | | | | mentor earlier and realized the Holy Grail of |
| to learn by making the mistakes yourself, by reading | | | | trading is simply excellent money management! |
| my stock market advice list. | | | | My stock market advice mistake tip #5 or the |
| The Stock Market advice tip #1, and worst mistake | | | | second most expensive mistake I made was not |
| that people make is that they believe trading is the | | | | having a predefined exit point. Early in my trading |
| easy answer, a way to get rich quickly. People will | | | | career, I remember trading a stock I thought had a |
| often expect to become wizards in the market | | | | high percentage chance of rising. I was too confident. |
| overnight, but they fail to realize that trading is like | | | | I fully leveraged the position. Unfortunately, when |
| any profession; you must learn how to do it first. | | | | things did not go as planned, I did not know when to |
| For example, would you attend a weekend doctor`s | | | | exit, and was paralysed. I kept rationalizing why I |
| seminar and expect to conduct heart surgery on | | | | should hold onto that stock. As the stock continued |
| Monday? Of course not! I am shocked at what | | | | to fall, I made more and more excuses. At the very |
| people expect when they go to a weekend trading | | | | end, I remember thinking, I can`t take it |
| seminar. They think they will create wealth without | | | | anymore! |
| having to work, invest or think, and it just doesn`t | | | | I sold out. That, of course, was the point the stock |
| happen that way. | | | | turned. |
| After treating trading like a get rich quick scheme, | | | | I learned two very valuable lessons that day. First, |
| my next stock market advice tip #2 and most | | | | always have your exit points predefined. Second, big |
| common mistake, is to approach the market without | | | | losses once started out as small losses, and it is much |
| a plan. Without a trading plan, traders approach the | | | | easier to take a small loss than a big one. |
| market in an inconsistent manner. One day they | | | | My Stock Market advice mistake tip #6 or the last |
| trade stocks and the next they trade the foreign | | | | most expensive mistake, I made is not one that |
| exchange. Or, they may use one set of indicators | | | | took money out of my pocket; instead it was a |
| one day, and the next day they will throw these | | | | mistake that made me leave money on the table. In |
| indicators out the window and take on a completely | | | | fact, this reoccurring mistake cost me big. |
| new set. Without a consistent approach, the only | | | | Early on, I remember selling positions as soon as they |
| thing governing their trading decisions is really | | | | showed a profit. I would not let my profits run, as I |
| emotions, and that will doom them to failure. | | | | was too afraid to give the money back to the |
| If a new trader has managed to skip these last two | | | | market. I figured the profit as mine. The result was |
| mistakes, they often fall down when they try to go | | | | that I ended up selling the stocks that were making |
| it alone. This is my Stock Market advice #3, all | | | | me money. |
| traders should find themselves a coach, or a mentor. | | | | It wasn`t until my mentor explained to me that when |
| Someone who can help them spot the errors in their | | | | you are trading, and showing a profit, that is the |
| system that they might not have noticed. An outside | | | | point where you should be adding to the position, not |
| point of view can help you avoid other costly | | | | closing it out, that I began to understand what I was |
| mistakes, and greatly increase your profits. | | | | doing. Once I started following his advice, my trading |
| These are some common and quite basic mistakes. | | | | profits soared. |
| The next errors I`ll mention are ones that are just as | | | | Trading is not an easy profession, but it give you |
| prevalent in the trading industry, but they often | | | | great rewards. Avoid these common errors on my |
| occur once traders have been around for a while. I | | | | Stock Market advice list, create a simple, |
| have some personal experience with these mistakes. | | | | well-designed trading system, and learn your market. |
| Let`s call this stock market advice list, the three | | | | If you take the time to study the market, and learn |
| most expensive mistakes I`ve made. | | | | from other`s mistakes as well as your own, you will |
| My stock market advice mistake tip #4, or the first | | | | become a successful trader. |